Section 43 b

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 May 2013 Interest on Cash credit account will be covered under section 43 B or not ? Why ?

My query arised because if bank charges interest on Cash credit then my loan amount increases and my balancing drawing pewer reduces and reduction in balancing drawing power does not mean repayment of interest.

Deepak Agrawal

Deepak Agrawal (Expert)
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10 May 2013 If the payment is not made in accordance with the terms and conditions of the Loan/CC agreement entered with Bank, then such payment cannot be allowed/or allowed to the extent it is paid during the relevant year u/s. 43B.

Thus your case is covered u/s. 43B.

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Guest

Guest (Expert)

11 May 2013 As per Section 43B(e)

any sum payable by the assessee as interest on any [loan or advances] from a scheduled bank in accordance with the terms and conditions of the agreement governing such loan [or advances]

Hence your case is covered under Section 43B.

Deepak is right

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